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2 Overview Second largest public employee benefits program in nation Second largest public employee benefits program in nation Mission: to help to attract and retain skilled employees in public service Mission: to help to attract and retain skilled employees in public service

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9 Retirement Eligibility Service – Age 60 Service – Age 60 Early – 25 years service Early – 25 years service (Reduced Under 55) (Reduced Under 55) Deferred –10 years of service Deferred –10 years of service (Collect at age 60) (Collect at age 60) Veteran Veteran Disability Disability

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10 Basic Benefit Formula (PERS & TPAF) Service Credit includes all service Service Credit includes all service Worked & Purchased Worked & Purchased FAS = Final Average Salary FAS = Final Average Salary Usually last 3 years Usually last 3 years Years/Months 55 XFAS = Gross Annual Pension

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17 Retirement Eligibility Service – 3 types, usually age 55 Service – 3 types, usually age 55 Mandatory Mandatory PFRS at 65 PFRS at 65 SPRS at 55 SPRS at 55 Special – 25 years Service Credit Special – 25 years Service Credit Deferred –10 years of service Deferred –10 years of service (Collect at age 55) (Collect at age 55) Disability Disability

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24 What Can You Purchase? Temporary Service Temporary Service Leave of Absence Leave of Absence Former Membership Former Membership Out-of-State Service Out-of-State Service Uncredited Service Uncredited Service Local or Municipal Service Local or Municipal Service U.S. Government Service U.S. Government Service U.S. Military Service U.S. Military Service

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25 Pension Loans 3 years posted service 3 years posted service 1/2 of posted contributions 1/2 of posted contributions 2 loans per calendar year 2 loans per calendar year Repayment through Payroll Deductions Repayment through Payroll Deductions Interest rate is 4% Interest rate is 4% Loans may be paid in full at any time Loans may be paid in full at any time

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26 Terminating Membership If Terminate NJ Public Employment and Not Eligible for Retirement Allowance: 1.Account Expires After 2 Years, and 2.Must Withdraw Contributions from System

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27 Post-Retirement Employment Cannot return to work under same NJ retirement system ( $ Thresholds) Still allows work in: 1. Private Industry 2. Federal Government 3. Other State Government 4. Position covered by different NJ Retirement system

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28 Defined Contribution Plan Alternate Benefits Program IRC 403(b) Plan State College & University Faculty State College & University Faculty 16,920 members 16,920 members